I love to read to my kids, and I have my favorite books where I am able to put on some of my favorite characters and really get lost in the performance. My favorite is The Big Wide Mouth Frog, it always gets a litte rowdy 
What is your favorite book to read to your kids?
http://www.todaysparent.com/activities/how-to-read
It's been quite awhile since we had a readaloud and I miss it (bah! to busy teens who come home after I'm in bed 
).
Looking back, the favourite books that I recall reading when they were really young invited a lot of interaction on their part. They roared their terrible roars and rolled their terrible eyes during Where the Wild Things Are. They said good-night to their lamps and dressers after Goodnight Moon.
A few picture books we liked:
Stellaluna
More More More, Said the Baby
If You Give a Mouse a Cookie
Grandfather's Journey
Chapter books:
Bunnicula
Stuart Little
Harry Potter
